Having your car repossessed can feel like a nightmare. This is an important possession that gets you to places. But there are options out there for those under such dramatic circumstances. Chapter 7, for example, can protect your vehicle from being repossessed. It will allow more time to help you negotiate with the lender. Contact a Salt Lake City repossession attorney to help you get your car back.
Chapter 7
You need time to negotiate with your lender. If you don’t wish to have the vehicle back, Chapter 7 can help you eliminate your deficiency balance. However, Chapter 7 won’t be very useful if the car was already sold. This is why it’s important you file Chapter 7 as soon as possible as it will provide you with more opportunities to negotiate. The moment you file Chapter 7 bankruptcy, creditors will have to stop bombarding you. They will need a court permission in order to pursue their collection efforts.
Getting your car back after the bankruptcy
You can negotiate with your lender since Chapter 7 wipes out your liability with your loan. They can go as far as modifying your agreement’s terms and lower your payments, balance, and interest. Just remember you will make yourself liable again. You can also choose to redeem your car. This means buying it back at a fair price. When the amount you owe on your loan is more than the car’s worth you will eventually pay only what your car is worth. But you need the money to pay for it otherwise you won’t be able to redeem it.
Chapter 13
This is also an option. Chapter 13 will help you force the lender to give you back your car and you pay off in the coming years. It’s also possible to reduce the balance you own and interest rate. In Chapter 13 you have to prove that your income goes to paying your debts. Only those expenses that are considered necessary can be deducted. In other words, if you own a lexus, Chapter 13 may not be a good option for you. A lowered price vehicle will be a better choice.
You rather lose the car
Even if you don’t want your precious possession back, Chapter 7 can still be helpful. After your car is sold out, the lender will bombard you with calls if the loan balance was not covered. The unpaid balance or deficiency can be erased with Chapter 7.
Find help
It’s important you understand your legal rights regarding car repossession. If you have failed to make your vehicle payments sooner or later you will have your car repossessed, even from your garage. Lenders can’t use force to repossess your car and they must sell it in an acceptable manner following the required sales practices. If the lender threatened you or used physical force in order to repossess the vehicle or if the sale of your car was not reasonable, you may have a claim against the lender. For more information about how you can get your car back with the help of a Salt Lake City repossession attorney, call us today and schedule your initial case evaluation.